Tour operator's collapse decimates scheme established to compensate holiday-makers

The scheme established to compensate holiday-goers when service providers go bust has less than half the funding on hand that was required to cover the collapse of a tour operator two years ago.

Officials at two Government departments have remained tight-lipped as to what plans - if any - are in place to compensate customers should another large travel agent go bust and exhaust the funding in place to protect international travellers.